Added a new Minecraft Profile Pic. This icon is a snapshot of your character's appearance. The new Minecraft Profile Pic replaces your Xbox Gamerpic on all screens, including Profile, lists of players, and on Realms.
Note that only Marketplace skins and Character Creator skins are supported at this time, so if you have a custom skin equipped, one of the default skins or your previously equipped Marketplace/Character Creator skin will be shown instead. This is being tracked at MCPE-189765.
This is working as intended per the changelog:
https://feedback.minecraft.net/hc/en-us/articles/39932063411213-Minecraft-Bedrock-Edition-1-21-111-The-Copper-Age
Note that only Marketplace skins and Character Creator skins are supported at this time, so if you have a custom skin equipped, one of the default skins or your previously equipped Marketplace/Character Creator skin will be shown instead. This is being tracked at MCPE-189765.